Super Micro Computer Inc shares took a nosedive on Friday, ending the day with a 20% drop after hitting a record high earlier in the day. The stock reached an all-time high of $1,077.87 before closing at $803.32, the largest single-day percentage decline since August.
The trading day was incredibly busy for Super Micro Computer Inc, with about 33.5 million shares changing hands. This marked its busiest trading day since the company’s initial public offering back in 2007. Wells Fargo analyst Aaron Rakers weighed in on the stock, initiating coverage with a price target of $960 and an ‘equal weight’ rating.
Despite Friday’s decline, the median price target for the stock sits at $635.29, more than 20% lower than the closing price. However, this is still higher than previous targets. BofA Global Research also joined the conversation, initiating coverage with a buy rating and a $1,040 price target. This is currently the highest target among the 13 Wall Street analysts covering the company.
The stock’s rapid rally triggered some bearish warning signals from a technical perspective. Despite this, Super Micro Computer Inc has managed to establish itself as an early launch partner for major AI chip makers. The company’s strong performance can be attributed to the high demand for artificial intelligence technology and its engineering-first differentiation strategy.
Investors will be keeping a close eye on Super Micro Computer Inc in the coming days to see how the stock responds to these developments and whether it can bounce back from Friday’s significant decline.
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